Ordina N.V. results third quarter 2016

Operating result higher on lower revenue

Highlights Q3 2016

  • Recurring EBITDA rises to EUR 4.2 million (Q3 2015: EUR 3.7 million);
  • Recurring EBITDA margin rises to 5.2% (Q3 2015: 4.3 %);
  • Revenue declines by 3.7% to EUR 81.6 million (Q3 2015: EUR 84.8 million);
  • Revenue the Netherlands declines by 8.7% to EUR 60.8 million (Q3 2015: EUR 66.6 million);
  • Revenue Belgium /Luxembourg rises by 14.6% to EUR 20.9 million (Q3 2015: EUR 18.2 million);
  • Net debt position reduced to EUR 5.9 million (Q3 2015: EUR 11.1 million);
  • Employee engagement score increases to 6.8;
  • Ordina wins five framework contracts for IT outsourcing in the public sector.

Highlights Q1-Q3 2016

  • Net result rises to EUR 3.3 million profit (YTD Q3 2015: EUR 4.0 million loss);
  • Recurring EBITDA rises to EUR 16.0 million (YTD Q3 2015: EUR 7.0 million);
  • Recurring EBITDA margin rises to 6.2% (YTD Q3 2015: 2.7%);
  • Revenue rises by 0.8% to EUR 259.4 million (YTD Q3 2015: EUR 257.5 million);
  • Revenue the Netherlands declines by 4.1% to EUR 194.3 million (YTD Q3 2015: EUR 202.6 million);
  • Revenue Belgium / Luxembourg rises by 18.6% to EUR 65.1 million (YTD Q3 2015: EUR 54.9 million).

Stépan Breedveld, CEO Ordina, about the results

“With less revenues in the public sector and financial services segments, the result increased on the back of cost controls. The growth in the industry and healthcare segments continued. Belgium/Luxembourg performs well.

The recent win of five framework IT outsourcing contracts from the Ministry for the Interior and Kingdom Relations (BZK) creates a solid basis for growth in revenues from the public sector in due course. These contracts are for IT positions in outsourcing fields that Ordina did not previously fill directly.

To ensure Ordina maintains the right number of direct employees, we make additional investments in the recruitment and retention. As part of these efforts, we used 50 workshops to engage our employees in the deployment of our strategy. Our employees view their participation in these sessions as very positive and say it increases their engagement with Ordina. We are pleased that our employee engagement level has increased once again and that our clients responded very positively to our biggest event of the year, the Ordina Open Innovation Days. We saw enormous interest in the Ordina solutions we presented to the more than 400 clients and business contacts who attended the event.

To better help our clients in the modernisation and digitisation of their business operations, Ordina will partner with T-Systems for a joint go-to-market strategy in the field of cloud, workstation and application services. As part of that cooperation, T-Systems will provide Ordina with hosting services.”